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Buying a new car on finance(PCP) for the first time

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Found 5th Jan 2014
As the title says. I want a fiesta econetic 1.0 125 and have been researching various finance options and models the for the past few weeks. I have decide that PCP is the best route to go down but I need some general advice about buying from a dealer. I apologise in advance for the large number of questions.

1. I assume I have to haggle and that I have 3 things I can haggle on. The price of the car, the amount in part ex/deposit for my car, the APR% is this right?
2. I have been through a site called drivethedeal.com which I assume are some kind of broker. Does this mean that the price haggling has been done for me and I just need the haggle the part ex value and the APR?
3. Will all Ford dealers offer the same deals or can I shop around for the cheapest overall package?
4. Is there anything I am missing?

My car is a mini worth just under £3k and I am looking to pay less than £200p/m including servicing 36months 1500miles/year

Any help would be appreciated.

Thanks

Phil
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12 Comments
You should shop around and don't be afraid to walk away from a deal.

From experience, if you start haggling straight away, the dealer will become less interested in your business because they know you will just push and push, which means less money for them, however buying on finance is a good thing because this earns them finance commission, so you are one up straight away. My advice would be to find the car you like, and ask for a quote, make sure they are giving you the correct part exchange price for your car, by checking with an online car valuation guide, then reject their first offer of finance! - Be prepared to walk away!

Your aim is to get the interest rate as low as possible, you can tell by how the dealer works, they tap away on the computer and just put in figures, they are testing the water with you, if they see you are not happy then they will usually try to get the deal, as you are already quite close to the purchase, let them ask managers and other people to see if they can better the quote, tell them you are willing to sign on the day if the deal is good enough.

Coming from a sales background many years ago, I know things have changed but the basic principles are still the same, if a customer comes in haggling on RRP, then on the part ex, then on the finance, you know they will not buy, not only would the deal become over complicated, it makes salesmen think you are a pain in the rear, and they would be better off selling the car to someone else.

Hope this helps.
Know anyone who can get you a ford ticket? Takes around 10% off
Is that the discount for people with family working for ford? Is it transferrable?
thanks for the reply
Yes and yes
OP. There are many places to consider this is one well worth a look as you could possibly get higher spec for the money you are looking at paying.

http://www.lingscars.com/Ford/Fiesta-leasing/cheap-contract-hire.html#models

Ignore the idiotic 14year olds webpage from 1999 design. It's actually legit.
aircanman

You should shop around and don't be afraid to walk away from a deal. … You should shop around and don't be afraid to walk away from a deal. From experience, if you start haggling straight away, the dealer will become less interested in your business because they know you will just push and push, which means less money for them, however buying on finance is a good thing because this earns them finance commission, so you are one up straight away. My advice would be to find the car you like, and ask for a quote, make sure they are giving you the correct part exchange price for your car, by checking with an online car valuation guide, then reject their first offer of finance! - Be prepared to walk away!Your aim is to get the interest rate as low as possible, you can tell by how the dealer works, they tap away on the computer and just put in figures, they are testing the water with you, if they see you are not happy then they will usually try to get the deal, as you are already quite close to the purchase, let them ask managers and other people to see if they can better the quote, tell them you are willing to sign on the day if the deal is good enough. Coming from a sales background many years ago, I know things have changed but the basic principles are still the same, if a customer comes in haggling on RRP, then on the part ex, then on the finance, you know they will not buy, not only would the deal become over complicated, it makes salesmen think you are a pain in the rear, and they would be better off selling the car to someone else. Hope this helps.



Thank you, something so obvious but i never thought of that.
If it helps I found contract hire to be much cheaper than PCP.

With contract hire you are just renting the car and give it back at the end, but you are better off in a lot of cases.

I haven't got exact figures but it cost me something like £4k to have a £18k car for 2 years. At that two year point they took the car back but offered it to me for £11k. I declined but even at that point it would have saved me £3k from the list price. I declined as looking around you could get a second hand one for about £7-£8k. What I'm saying is the amount you pay out is less than the depreciation of a new car. You're not tied in to it and if you do want to own the car at the end you can or you can choose to pay less for a different one.

contracthireandleasing.com was good for searching through at the time. Fords didn't have the best offers though. You can get some really good deals when manufacturers have made too many or if they have a certain model/colour which isn't selling well.
Just to throw in totally different things, there are some very good deals on electric cars at the moment if they suit your usage profile.

After allowing for fuel costs/servicing costs/tax they can be very competitive.
thanks for all the suggestions. I have looked at lings cars and other leasing options but the personal lease seaction always comes up more expensive than pcp. I am looking to get a new one mainly due to the warranty. I bought a second hand car last time but have been stung for some major repair bills recently.
I woukd love an electric car but sadly don't have a driveway so charging isn't really practical
teacherphil

I woukd love an electric car but sadly don't have a driveway so charging … I woukd love an electric car but sadly don't have a driveway so charging isn't really practical



Given that, it would probably make me not want a new car. I don't know your circumstances etc but I wouldn't fancy a new car without a drive. I wouldn't fancy a new car at work at the moment as I have to park on the road whilst we have building work done.

I'd get a 2-3 year old car, bonus being that you don't have the big hit of depreciation, it's not so painful if it does get a little knock or scratch and you save a wad of money!
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